Determine Passive Activity Loss Rental Property – Paul Gaulkin CPA

An activity is a rental activity is during the year: 1. Tangible property held in connection with the activity is used by customers or is held for use by customers; and 2. Gross income attributable to the conduct of the activity represents amounts paid principally for the use of the property. Generally speaking, any rental activity is a passive activity, without regard to material participation. This means that no matter the amount of hours you put into a rental activity, … Read more